Yahoo Finance 4 Dividend-Paying Healthcare Stocks with Rising Profits
When it comes to resilience, there is no sector like healthcare.
Health and medical services are a necessity and people will still spend on it during tough economic times.
Investors who are looking to add stability to their portfolios can scout around for suitable healthcare names.
It is also a bonus if these stocks pay dividends.
Healthcare stocks allow you to own a solid business that is recession-proof while enjoying a steady flow of passive income.
Here are four dividend-paying healthcare stocks that report higher profits.
TalkMed Group (SGX: 5G3)
TalkMed provides tertiary medical services in the fields of oncology, stem cell transport, and palliative care.
Its patients are in Singapore and the Asian region.
The group reported an encouraging set of results for the first half of 2023 (1H 2023).
Revenue jumped 16.4% year on year to S$37.8 million as the business saw higher patient volumes with the easing of travel restrictions.
Net profit improved by 9.1% year on year to S$12.5 million.
TalkMed also saw its free cash flow rise from S$14.5 million in 1H 2022 to S$21.4 million.
The group paid out an interim dividend of S$0.009 per share, down from S$0.015 the year before.
Coupled with last year’s final dividend of S$0.015, TalkMed’s trailing 12-month dividend stood at S$0.024.
Management warned of local patient numbers being affected by the introduction of a cancer drug list where only treatments under this list may be claimed under MediSave or integrated Shield plans.
However, its gene therapy division CellVec is seeing a pick up in venture capital funding and is now better positioned to take on a larger group of clients.
IHH Healthcare (SGX: Q0F)
IHH Healthcare is an integrated healthcare provider with a portfolio of trusted brands such as Acibadem, Mount Elizabeth, Gleneagles, Fortis, Panta, and Parkway.
The group is present in 10 countries and employs 65,000 people.
For 1H 2023, IHH’s revenue increased by 15% year on year to RM 9.8 billion on higher patient volumes.
Net profit surged by 53% year on year to RM 1.7 billion.
IHH generated a positive free cash flow of RM 802.6 million, though this was about 11.6% lower than the prior year’s RM 907.8 million.
The healthcare giant declared an interim dividend of RM 0.035.
IHH intends to continue its organic growth by expanding its bed capacity with the addition of close to 3,000 beds across Malaysia, India, Turkey, and Europe over the next three years.
Management is also looking to reconfigure its portfolio by removing underperforming assets to improve overall returns.
Elsewhere, the healthcare group is expanding its service offerings and developing additional income streams such as its laboratory business, all while investing in digital health services.
ISEC Healthcare (SGX: 40T)
ISEC Healthcare is a comprehensive medical eye care service provider.
The group specialises in the fields of cataract and refractive surgery, owns ambulatory surgical centres in Malaysia, and provides specialist medical ophthalmology services at Gleneagles Hospital in Singapore.
During 1H 2023, revenue climbed 23% year on year to S$34.4 million with the lifting of international travel restrictions.
Net profit increased by 12% year on year to S$6.1 million.
Free cash flow generated amounted to S$6.2 million for 1H 2023, in line with the S$6.1 million churned out a year ago.
ISEC Healthcare paid out an interim dividend of S$0.0076, 58.3% higher than the S$0.0048 paid out in 1H 2022.
Coupled with 2022’s final dividend of S$0.018, the eye care specialist’s trailing 12-month dividend stood at S$0.0256.
Econ Healthcare (SGX: EHG)
Econ Healthcare is a private nursing home operator in Singapore and Malaysia and provides eldercare services.
Its network consists of 11 Medicare centres and nursing homes in Singapore and Malaysia along with two nursing homes in China.
For the group’s fiscal 2023 (FY2023) ending 31 March 2023, revenue increased by 11.8% year on year to S$43.5 million.
Net profit soared from just S$350,000 in FY2022 to S$4.8 million.
The business generated a positive free cash flow of S$8.1 million for FY2023.
A final dividend of S$0.0044 was declared, bringing the total FY2023 dividend to S$0.0067.
Back in May, the group opened its second nursing home in Changshou, Chongqing, in China.
This nursing home is a 280-bed eldercare facility serving the middle to affluent market.
CEO Ong Chu Poh is confident in executing Econ Healthcare’s growth strategies to meet the increasing demand for quality senior healthcare.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
The post 4 Dividend-Paying Healthcare Stocks with Rising Profits appeared first on The Smart Investor.
